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Thursday, Sep 5
Rigel Pharmaceutical plans restructuring to focus on three lead clinical programs; cuts workforce 18%
- Rigel Pharmaceuticals (RIGL +1.6%) says it's narrowing its focus to three of its lead clinical programs, a decision that includes the elimination of about 18% of its work force.
- It plans to commence a Phase III study of fostamtinib, a treatment for immune thrombocytopnic purpura - which is a blood disorder that mostly affects women. It's discontinuing development of fostamatinib for rheumatoid arthritis or lymphoma, citing disappointing results in recent studies and strong competition in those areas.
- The company also anticipates moving ahead on either its treatment for discoid lupus erythematosus, an autoimune skin disease, or its treatment for dry eye.
- Both drug candidates are in Phase II studies with results expected in Q2 of this year and the Q2 of next year, respectively.
- Restructuring and related charges are still being assessed, but are expected to mostly be recorded in Q3.
- The company has around $251M in cash and equivalents, an amount it expects to support its current priorities into 2016.